Three of the USA’s largest organic dairy companies are suing the federal government over a Depression-era system that regulates milk sales, arguing it forces organic farmers to subsidize their conventional competitors.

Aurora Organic Dairy, Horizon Organic Dairy and CROPP Cooperative/Organic Valley filed four federal actions in late April under the banner of Coalition for Organic Dairy Exemption.  A fourth case seeks compensation on behalf of roughly 1,350 organic dairy farmers who are CROPP members.

So far, organic dairies must participate in the Federal Milk Marketing Order program and pay into regional producer settlement funds. The coalition states that organic dairy pays roughly $50m annually into the milk marketing system (more than $400m since 2006), with almost no money returned to organic milk producers.